citation: CIV § 2213

text: This chapter shall be known, and may be cited, as the Carrier of Passengers Act of 2024.

history: (History: Added by Stats. 2024, Ch. 742, Sec. 1. (AB 2780) Effective January 1, 2025.)

title: 7. CARRIAGE

chapter: 6. Carrier of Passengers Act of 2024

article: 1. Title

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 1. Title


kind: section

code: CIV

citation: CIV § 2214

text:
For purposes of this chapter, the following definitions apply:

(a) “Carrier of passengers” means a motor carrier, passenger carrier, or charter-party carrier of passengers that operates a motor vehicle, on a commercial or for-hire basis, and engages in the embarkation and disembarkation of passengers.

(b) “Charter-party carrier of passengers” has the same meaning as used in Section 5360 of the Public Utilities Code.

(c) “Disembarkation” means the physical discharge of passengers from a transportation service provided by a carrier of passengers at a geographic location within California.

(d) “Embarkation” means the physical commencement of a transportation service provided by a carrier of passengers.

(e) “Motor vehicle” has the same meaning as used in Section 5359 of the Public Utilities Code.

history: (History: Amended by Stats. 2025, Ch. 67, Sec. 32. (AB 1170) Effective January 1, 2026.)

title: 7. CARRIAGE

article: 2. Definitions

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 2. Definitions


citation: CIV § 2215

text:
(a) (1) This chapter applies to any carrier of passengers operating a motor vehicle who knows or reasonably should know that the motor vehicle will be transporting, from embarkation, 10 or more passengers who are likely to seek emergency shelter and other immediate services upon disembarkation.

(2) For purposes of this subdivision, “likely to seek emergency shelter and other immediate services upon disembarkation” may include, but is not limited to, any of the following:

(A) Temporary housing or shelter.

(B) Food.

(C) Clothing.

(D) Medical screenings.

(b) For purposes of this chapter, there is a presumption that passengers who have arrived in the United States within 30 days of embarkation are likely to seek emergency shelter and other immediate services upon disembarkation.

(c) At least 24 hours before embarkation, a carrier of passengers shall provide electronic notice to a designated point of contact at the governing body of the city, county, or city and county with jurisdiction at the geographic location of disembarkation. This electronic notice shall include all of the following information:

(1) The anticipated date and time of arrival of passengers at the geographic location of disembarkation and the address of the geographic location.

(2) The waybill or trip report, consistent with Section 5381.5 of the Public Utilities Code.

(3) The number of passengers on the motor vehicle who the carrier of passengers knows or reasonably should know arrived in the United States within 30 days of embarkation, and, if the carrier of passengers has relevant information, the number of these passengers that are likely to seek emergency shelter and other immediate services upon disembarkation.

(4) A description of the motor vehicle, including the color, the license plate number, and any logo or other information printed on the exterior of the motor vehicle to assist local officials in identifying the motor vehicle.

(d) (1) The governing body of the city, county, or city and county with jurisdiction at the geographic location of disembarkation may designate a specific location of disembarkation within the governing body’s jurisdiction.

(2) A governing body described in paragraph (1) that elects to designate a specific location of disembarkation pursuant to paragraph (1) shall post notice of that location on the governing body’s internet website. The carrier of passengers shall check the internet website before embarkation. If the location of disembarkation is not posted on the internet website, the carrier of passengers may disembark at the geographic location they specify pursuant to paragraph (1) of subdivision (c).

(e) If a governing body described in paragraph (1) of subdivision (d) elects to designate a specific location of disembarkation pursuant to paragraph (1) of subdivision (d), and has provided electronic notice of that location pursuant to paragraph (2) of subdivision (d) or posted notice of that location on the governing body’s internet website pursuant to paragraph (2) of subdivision (d), disembarkation shall only occur at that location.

(f) (1) The location of disembarkation, including the city and county, shall be made known to, and agreed to by, each passenger before embarkation.

(2) If the passenger is a minor, then the location of disembarkation shall be made known to, and agreed to by, the minor passenger’s parent or guardian before embarkation. The notice and agreement shall be done in the passenger’s primary language.

(g) A governing body shall not share, disclose, or otherwise make accessible to any immigration authority, as defined in Section 7284.4 of the Government Code, any information shared or received pursuant to any provision of this chapter without a court-ordered subpoena or judicial warrant.

title: 7. CARRIAGE

article: 3. General Provisions

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 3. General Provisions


citation: CIV § 2216

text:
(a) Any of the following parties may bring a civil action seeking preventive relief, including for a permanent or temporary injunction, restraining order, or other order against the carrier of passengers, for one or more violations of this chapter:

(1) The Attorney General, a district attorney, or a city attorney.

(2) A passenger who was transported in violation of this chapter.

(3) A homeless service provider or shelter, a health care service provider, or a nonprofit social service provider that suffered a direct violation of this chapter.

(b) A carrier of passengers that violates this chapter, or whose employee violates this chapter, may be assessed a civil penalty of up to ten thousand dollars ($10,000) for each act of transporting a person that resulted in one or more violations of this chapter.

(c) Article 6 (commencing with Section 5411) of Chapter 8 of the Public Utilities Code does not apply for purposes of this chapter.

(d) The Attorney General, a district attorney, or a city attorney may bring the action described in subdivision (b).

(e) A prevailing plaintiff shall be entitled to attorney’s fees and costs in any action brought pursuant to subdivision (a) or (b).

title: 7. CARRIAGE

article: 4. Civil Action and Penalties

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 4. Civil Action and Penalties


citation: CIV § 2217

text:
(a) This chapter does not preempt, limit, prohibit, or otherwise affect the adoption, implementation, or enforcement of any local ordinance, code, regulation, or order related to carrier of passenger transportation services, except only to the extent that the local ordinance, code, regulation, or order is inconsistent with this chapter. Any local ordinance, code, regulation, or order is not inconsistent with this chapter if it affords greater protection to passengers than the requirements set forth in this chapter. Any local ordinance, code, regulation, or order that duplicates or supplements this chapter shall be construed as providing additional remedies to those set forth in this chapter, and shall not be construed to preempt, limit, prohibit, or otherwise affect this chapter.

(b) This chapter shall only be implemented to the extent that implementation is consistent with federal law.

title: 7. CARRIAGE

article: 5. Applicability

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 5. Applicability


citation: CIV § 2218

text: (a) The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

title: 7. CARRIAGE

article: 6. Severability

path: 7. CARRIAGE > 6. Carrier of Passengers Act of 2024 > 6. Severability


citation: CIV § 2223

text: One who wrongfully detains a thing is an involuntary trustee thereof, for the benefit of the owner.

history: (History: Repealed and added by Stats. 1986, Ch. 820, Sec. 8. Operative July 1, 1987, by Sec. 43 of Ch. 820.)

title: 8. INVOLUNTARY TRUSTS

path: 8. INVOLUNTARY TRUSTS


citation: CIV § 2224

text: One who gains a thing by fraud, accident, mistake, undue influence, the violation of a trust, or other wrongful act, is, unless he or she has some other and better right thereto, an involuntary trustee of the thing gained, for the benefit of the person who would otherwise have had it.

title: 8. INVOLUNTARY TRUSTS


text: An action brought by the Attorney General pursuant to Section 2223 or 2224 may be brought at any time within 10 years after the cause of action accrued.

history: (History: Added by Stats. 2015, Ch. 299, Sec. 2. (AB 556) Effective January 1, 2016.)

title: 8. INVOLUNTARY TRUSTS


citation: CIV § 2225

text:
(a) As used in this section:

(1) “Convicted felon” means any person convicted of a felony, or found not guilty by reason of insanity of a felony committed in California, either by a court or jury trial or by entry of a plea in court.

(2) “Felony” means a felony defined by any California or United States statute.

(3) (A) “Representative of the felon” means any person or entity receiving proceeds or profits by designation of that felon, on behalf of that felon, or in the stead of that felon, whether by the felon’s designation or by operation of law.

(B) “Profiteer of the felony” means any person who sells or transfers for profit any memorabilia or other property or thing of the felon, the value of which is enhanced by the notoriety gained from the commission of the felony for which the felon was convicted. This subparagraph shall not apply to any media entity reporting on the felon’s story or on the sale of the materials, memorabilia, or other property or thing of the felon. Nor shall it apply to the sale of the materials, as the term is defined in paragraph (6), where the seller is exercising his or her first amendment rights. This subparagraph also shall not apply to the sale or transfer by a profiteer of any other expressive work protected by the First Amendment unless the sale or transfer is primarily for a commercial or speculative purpose.

(4) (A) “Beneficiary” means a person who, under applicable law, other than the provisions of this section, has or had a right to recover damages from the convicted felon for physical, mental, or emotional injury, or pecuniary loss proximately caused by the convicted felon as a result of the crime for which the felon was convicted.

(B) If a beneficiary described in subparagraph (A) has died, “beneficiary” also includes a person or estate entitled to recover damages pursuant to Chapter 4 (commencing with Section 377.10) of Title 3 of Part 2 of the Code of Civil Procedure.

(C) If a person has died and the death was proximately caused by the convicted felon as a result of the crime for which the felon was convicted, “beneficiary” also includes a person described in Section 377.60 of the Code of Civil Procedure and any beneficiary of a will of the decedent who had a right under that will to receive more than 25 percent of the value of the estate of the decedent.

(5) “Beneficiary’s interest” means that portion of the proceeds or profits necessary to pay the following:

(A) In the case of a beneficiary described in subparagraph (A) or (B) of paragraph (4), those damages that, under applicable law, other than the provisions of this section, the beneficiary has or had a right to recover from the convicted felon for injuries proximately caused by the convicted felon as a result of the crime for which the felon was convicted.

(B) In the case of a beneficiary described in subparagraph (C) of paragraph (4), those damages that, under all the circumstances of the case, may be just.

(C) A beneficiary’s interest shall be reduced by the following amount:

(i) Money paid to the beneficiary from the Restitution Fund because of the crime for which the felon was convicted.

(ii) Money paid to the beneficiary by the convicted felon because of a requirement of restitution imposed by a court in connection with the crime for which the felon was convicted.

(iii) Money paid to the beneficiary because of a judgment against the convicted felon based upon the crime for which the felon was convicted.

(D) In the case of an unsatisfied existing judgment or order of restitution against the convicted felon and in favor of a beneficiary, any money paid to the beneficiary pursuant to this section shall be applied to reduce the amount of the unsatisfied judgment or order.

(6) “Materials” means books, magazine or newspaper articles, movies, films, videotapes, sound recordings, interviews or appearances on television and radio stations, and live presentations of any kind.

(7) “Story” means a depiction, portrayal, or reenactment of a felony and shall not be taken to mean a passing mention of the felony, as in a footnote or bibliography.

(8) “Sale” includes lease, license, or any other transfer or alienation taking place in California or elsewhere.

(9) “Proceeds” means all fees, royalties, real property, or other consideration of any and every kind or nature received by or owing to a felon or his or her representatives for the preparation for the purpose of sale of materials, for the sale of the rights to materials, or the sale or distribution by the convicted felon of materials whether earned, accrued, or paid before or after the conviction. It includes any interest, earnings, or accretions upon proceeds, and any property received in exchange for proceeds.

(10) “Profits” means all income from anything sold or transferred by the felon, a representative of the felon, or a profiteer of the felony, including any right, the value of which thing or right is enhanced by the notoriety gained from the commission of a felony for which a convicted felon was convicted. This income may have been accrued, earned, or paid before or after the conviction. However, voluntary donations or contributions to a defendant to assist in the defense of criminal charges shall not be deemed to be “profits,” provided the donation or contribution to that defense is not given in exchange for some material of value.

(b) (1) All proceeds from the preparation for the purpose of sale, the sale of the rights to, or the sale of materials that include or are based on the story of a felony for which a convicted felon was convicted, shall be subject to an involuntary trust for the benefit of the beneficiaries set forth in this section. That trust shall continue until five years after the time of payment of the proceeds to the felon or five years after the date of conviction, whichever is later. If an action is filed by a beneficiary to recover his or her interest in a trust within those time limitations, the trust character of the property shall continue until the conclusion of the action. At the end of the five-year trust period, any proceeds that remain in trust that have not been claimed by a beneficiary shall be transferred to the Controller, to be allocated to the Restitution Fund for the payment of claims pursuant to Section 13969 of the Government Code.

(2) All profits shall be subject to an involuntary trust for the benefit of the beneficiaries set forth in this section. That trust shall continue until five years after the time of payment of the profits to the felon or five years after the date of conviction, whichever is later. If an action is filed by a beneficiary to recover his or her interest in a trust within those time limitations, the trust character of the property shall continue until the conclusion of the action. At the end of the five-year trust period, any profits that remain in trust that have not been claimed by a beneficiary shall be transferred to the Controller, to be allocated to the Restitution Fund for the payment of claims pursuant to Section 13969 of the Government Code.

(3) Notwithstanding paragraph (2), in the case of a sale or transfer by a profiteer of the felony, the court in an action under subdivision (c) shall, upon an adequate showing by the profiteer of the felony, exclude from the involuntary trust that portion of the profits that represents the inherent value of the memorabilia, property, or thing sold or transferred and exclusive of the amount of the enhancement to the value due to the notoriety of the convicted felon.

(c) (1) Any beneficiary may bring an action against a convicted felon, representative of the felon, or a profiteer of a felony to recover his or her interest in the trust established by this section.

(2) That action may be brought in the superior court of the county in which the beneficiary resides, or of the county in which the convicted felon resides, or of the county in which proceeds or profits are located.

(3) If the court determines that a beneficiary is entitled to proceeds or profits pursuant to this section, the court shall order the payment from proceeds or profits that have been received, and, if that is insufficient, from proceeds or profits that may be received in the future.

(d) If there are two or more beneficiaries and if the available proceeds or profits are insufficient to pay all beneficiaries, the proceeds or profits shall be equitably apportioned among the beneficiaries taking into account the impact of the crime upon them.

Prior to any distribution of any proceeds to a beneficiary, the court shall determine whether the convicted felon has failed to pay any portion of a restitution fine or penalty fine imposed by a court, or any restitution imposed as a condition of probation. The court shall also determine whether the felon is obligated to reimburse a governmental entity for the costs of his or her defense and whether a portion of the proceeds is needed to cover his or her reasonable attorney’s fees incurred in the criminal proceeding related to the felony, or any appeal or other related proceeding, or in the defense of the action brought under this section. The court shall order payment of these obligations prior to any payment to a beneficiary, except that 60 percent of the proceeds or profits shall be reserved for payment to the beneficiaries.

(e) (1) The Attorney General may bring an action to require proceeds or profits received by a convicted felon to be held in an express trust in a bank authorized to act as a trustee.

(2) An action may be brought under this subdivision within one year after the receipt of proceeds or profits by a convicted felon or one year after the date of conviction, whichever is later.

That action may be brought in the superior court of any county in which the Attorney General has an office.

(3) If the Attorney General proves that the proceeds or profits are proceeds or profits from the sale of a story or thing of value that are subject to an involuntary trust pursuant to this section, and that it is more probable than not that there are beneficiaries within the meaning of this section, the court shall order that all proceeds or profits be deposited in a bank and held by the bank as trustee of the trust until an order of disposition is made by a court pursuant to subdivision (d), or until the expiration of the period specified in subdivision (b).

(4) If the Attorney General prevails in an action under this subdivision, the court shall order the payment from the proceeds or profits to the Attorney General of reasonable costs and attorney’s fees.

(f) (1) In any action brought pursuant to this section, upon motion of a party the court shall grant a preliminary injunction to prevent any waste of proceeds or profits if it appears that the proceeds or profits are subject to the provisions of this section, and that they may be subject to waste.

(2) Upon motion of the Attorney General or any potential beneficiary, the court shall grant a preliminary injunction against a person against whom an indictment or information for a felony has been filed in superior court to prevent any waste of proceeds or profits if there is probable cause to believe that the proceeds or profits would be subject to an involuntary trust pursuant to this section upon conviction of this person, and that they may be subject to waste.

(g) Any violation of an order of a court made pursuant to this section shall be punishable as contempt.

(h) The remedies provided by this section are in addition to other remedies provided by law.

No period of limitations, except those provided by this section, shall limit the right of recovery under this section.

history: (History: Amended by Stats. 2000, Ch. 261, Sec. 2. Effective January 1, 2001.)

title: 8. INVOLUNTARY TRUSTS


citation: CIV § 2295

text: An agent is one who represents another, called the principal, in dealings with third persons. Such representation is called agency.

history: (History: Enacted 1872.)

title: 9. AGENCY

chapter: 1. Agency in General

article: 1. Definition of Agency

path: 9. AGENCY > 1. Agency in General > 1. Definition of Agency


citation: CIV § 2296

text: Any person having capacity to contract may appoint an agent, and any person may be an agent.

title: 9. AGENCY

article: 1. Definition of Agency


citation: CIV § 2297

text: An agent for a particular act or transaction is called a special agent. All others are general agents.

title: 9. AGENCY

article: 1. Definition of Agency


citation: CIV § 2298

text: An agency is either actual or ostensible.

title: 9. AGENCY

article: 1. Definition of Agency


citation: CIV § 2299

text: An agency is actual when the agent is really employed by the principal.

title: 9. AGENCY

article: 1. Definition of Agency


citation: CIV § 2300

text: An agency is ostensible when the principal intentionally, or by want of ordinary care, causes a third person to believe another to be his agent who is not really employed by him.

title: 9. AGENCY

article: 1. Definition of Agency


citation: CIV § 2304

text: An agent may be authorized to do any acts which his principal might do, except those to which the latter is bound to give his personal attention.

title: 9. AGENCY

article: 2. Authority of Agents

path: 9. AGENCY > 1. Agency in General > 2. Authority of Agents


citation: CIV § 2305

text: Every act which, according to this Code, may be done by or to any person, may be done by or to the agent of such person for that purpose, unless a contrary intention clearly appears.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2306

text: An agent can never have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom he deals, to be a fraud upon the principal.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2307

text: An agency may be created, and an authority may be conferred, by a precedent authorization or a subsequent ratification.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2308

text: A consideration is not necessary to make an authority, whether precedent or subsequent, binding upon the principal.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2309

text: An oral authorization is sufficient for any purpose, except that an authority to enter into a contract required by law to be in writing can only be given by an instrument in writing.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2310

text: A ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified, or where an oral authorization would suffice, by accepting or retaining the benefit of the act, with notice thereof.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2311

text: Ratification of part of an indivisible transaction is a ratification of the whole.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2312

text: A ratification is not valid unless, at the time of ratifying the act done, the principal has power to confer authority for such an act.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2313

text: No unauthorized act can be made valid, retroactively, to the prejudice of third persons, without their consent.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2314

text: A ratification may be rescinded when made without such consent as is required in a contract, or with an imperfect knowledge of the material facts of the transaction ratified, but not otherwise.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2315

text: An agent has such authority as the principal, actually or ostensibly, confers upon him.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2316

text: Actual authority is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2317

text: Ostensible authority is such as a principal, intentionally or by want of ordinary care, causes or allows a third person to believe the agent to possess.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2318

text: Every agent has actually such authority as is defined by this Title, unless specially deprived thereof by his principal, and has even then such authority ostensibly, except as to persons who have actual or constructive notice of the restriction upon his authority.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2319

text:
An agent has authority:

1. To do everything necessary or proper and usual, in the ordinary course of business, for effecting the purpose of his agency; and,

2. To make a representation respecting any matter of fact, not including the terms of his authority, but upon which his right to use his authority depends, and the truth of which cannot be determined by the use of reasonable diligence on the part of the person to whom the representation is made.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2320

text: An agent has power to disobey instructions in dealing with the subject of the agency, in cases where it is clearly for the interest of his principal that he should do so, and there is not time to communicate with the principal.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2321

text: When an authority is given partly in general and partly in specific terms, the general authority gives no higher powers than those specifically mentioned.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2322

text:
An authority expressed in general terms, however broad, does not authorize an agent to do any of the following:

(a) Act in the agent’s own name, unless it is the usual course of business to do so.

(b) Define the scope of the agency.

(c) Violate a duty to which a trustee is subject under Section 16002, 16004, 16005, or 16009 of the Probate Code.

history: (History: Amended by Stats. 1988, Ch. 113, Sec. 5. Effective May 25, 1988. Operative July 1, 1988, by Sec. 23 of Ch. 113.)

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2323

text: An authority to sell personal property includes authority to warrant the title of the principal, and the quality and quantity of the property.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2324

text: An authority to sell and convey real property includes authority to give the usual convenants of warranty.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2325

text: A general agent to sell, who is intrusted by the principal with the possession of the thing sold, has authority to receive the price.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2326

text: A special agent to sell has authority to receive the price on delivery of the thing sold, but not afterwards.

title: 9. AGENCY

article: 2. Authority of Agents


citation: CIV § 2330

text: An agent represents his principal for all purposes within the scope of his actual or ostensible authority, and all the rights and liabilities which would accrue to the agent from transactions within such limit, if they had been entered into on his own account, accrue to the principal.

title: 9. AGENCY

path: 9. AGENCY > 1. Agency in General > 3. Mutual Obligations of Principals and Third Persons


citation: CIV § 2331

text: A principal is bound by an incomplete execution of an authority, when it is consistent with the whole purpose and scope thereof, but not otherwise.

title: 9. AGENCY

article: 3. Mutual Obligations of Principals and Third Persons


citation: CIV § 2332

text: As against a principal, both principal and agent are deemed to have notice of whatever either has notice of, and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.

title: 9. AGENCY


citation: CIV § 2333

text: When an agent exceeds his authority, his principal is bound by his authorized acts so far only as they can be plainly separated from those which are unauthorized.

title: 9. AGENCY


citation: CIV § 2334

text: A principal is bound by acts of his agent, under a merely ostensible authority, to those persons only who have in good faith, and without want of ordinary care, incurred a liability or parted with value, upon the faith thereof.

history: (History: Amended by Stats. 1905, Ch. 457.)

title: 9. AGENCY


citation: CIV § 2335

text: If exclusive credit is given to an agent by the person dealing with him, his principal is exonerated by payment or other satisfaction made by him to his agent in good faith, before receiving notice of the creditor’s election to hold him responsible.

title: 9. AGENCY


citation: CIV § 2336

text: One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction, may set off against any claim of the principal arising out of the same, all claims which he might have set off against the agent before notice of the agency.

title: 9. AGENCY


citation: CIV § 2337

text: An instrument within the scope of his authority by which an agent intends to bind his principal, does bind him if such intent is plainly inferable from the instrument itself.

title: 9. AGENCY


citation: CIV § 2338

text: Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as a part of the transaction of such business, and for his willful omission to fulfill the obligations of the principal.

title: 9. AGENCY


citation: CIV § 2339

text: A principal is responsible for no other wrongs committed by his agent than those mentioned in the last section, unless he has authorized or ratified them, even though they are committed while the agent is engaged in his service.

title: 9. AGENCY


citation: CIV § 2342

text: One who assumes to act as an agent thereby warrants, to all who deal with him in that capacity, that he has the authority which he assumes.

title: 9. AGENCY

path: 9. AGENCY > 1. Agency in General > 4. Obligations of Agents to Third Persons


citation: CIV § 2343

text:
One who assumes to act as an agent is responsible to third persons as a principal for his acts in the course of his agency, in any of the following cases, and in no others:

1. When, with his consent, credit is given to him personally in a transaction;

2. When he enters into a written contract in the name of his principal, without believing, in good faith, that he has authority to do so; or,

3. When his acts are wrongful in their nature.

title: 9. AGENCY

article: 4. Obligations of Agents to Third Persons


citation: CIV § 2344

text: If an agent receives anything for the benefit of his principal, to the possession of which another person is entitled, he must, on demand, surrender it to such person, or so much of it as he has under his control at the time of demand, on being indemnified for any advance which he has made to his principal, in good faith, on account of the same; and is responsible therefor, if, after notice from the owner, he delivers it to his principal.

title: 9. AGENCY


citation: CIV § 2345

text: The provisions of this Article are subject to the provisions of Part I, Division First, of this Code.

title: 9. AGENCY


citation: CIV § 2349

text:
An agent, unless specially forbidden by his principal to do so, can delegate his powers to another person in any of the following cases, and in no others:

1. When the act to be done is purely mechanical;

2. When it is such as the agent cannot himself, and the sub-agent can lawfully perform;

3. When it is the usage of the place to delegate such powers; or,

4. When such delegation is specially authorized by the principal.

title: 9. AGENCY

article: 5. Delegation of Agency

path: 9. AGENCY > 1. Agency in General > 5. Delegation of Agency


citation: CIV § 2350

text: If an agent employs a sub-agent without authority, the former is a principal and the latter his agent, and the principal of the former has no connection with the latter.

title: 9. AGENCY

article: 5. Delegation of Agency


citation: CIV § 2351

text: A sub-agent, lawfully appointed, represents the principal in like manner with the original agent; and the original agent is not responsible to third persons for the acts of the sub-agent.

title: 9. AGENCY

article: 5. Delegation of Agency


citation: CIV § 2355

text:
An agency is terminated, as to every person having notice thereof, by any of the following:

(a) The expiration of its term.

(b) The extinction of its subject.

(c) The death of the agent.

(d) The agent’s renunciation of the agency.

(e) The incapacity of the agent to act as such.

history: (History: Amended by Stats. 1994, Ch. 307, Sec. 1. Effective January 1, 1995.)

title: 9. AGENCY

article: 6. Termination of Agency

path: 9. AGENCY > 1. Agency in General > 6. Termination of Agency


citation: CIV § 2356

text:
(a) Unless the power of an agent is coupled with an interest in the subject of the agency, it is terminated by any of the following:

(1) Its revocation by the principal.

(2) The death of the principal.

(3) The incapacity of the principal to contract.

(b) Notwithstanding subdivision (a), any bona fide transaction entered into with an agent by any person acting without actual knowledge of the revocation, death, or incapacity shall be binding upon the principal, his or her heirs, devisees, legatees, and other successors in interest.

(c) Nothing in this section shall affect the provisions of Section 1216.

(d) With respect to a proxy given by a person to another person relating to the exercise of voting rights, to the extent the provisions of this section conflict with or contravene any other provisions of the statutes of California pertaining to the proxy, the latter provisions shall prevail.

history: (History: Amended by Stats. 1994, Ch. 307, Sec. 2. Effective January 1, 1995.)

title: 9. AGENCY

article: 6. Termination of Agency


citation: CIV § 2357

text:
For the purposes of subdivision (b) of Section 2356, in the case of a principal who is an absentee as defined in Section 1403 of the Probate Code, a person shall be deemed to be without actual knowledge of:

(a) The principal’s death or incapacity while the absentee continues in missing status and until the person receives notice of the determination of the death of the absentee by the secretary concerned or the head of the department or agency concerned or the delegate of the secretary or head.

(b) Revocation by the principal during the period described in subdivision (a).

history: (History: Amended by Stats. 1994, Ch. 307, Sec. 3. Effective January 1, 1995.)

title: 9. AGENCY

article: 6. Termination of Agency


citation: CIV § 2362

text:
An auctioneer, in the absence of special authorization or usage to the contrary, has authority from the seller, only as follows:

1. To sell by public auction to the highest bidder;

2. To sell for cash only, except such articles as are usually sold on credit at auction;

3. To warrant, in like manner with other agents to sell, according to Section 2323;

4. To prescribe reasonable rules and terms of sale;

5. To deliver the thing sold, upon payment of the price;

6. To collect the price; and,

7. To do whatever else is necessary, or proper and usual, in the ordinary course of business, for effecting these purposes.

title: 9. AGENCY

chapter: 2. Particular Agencies

article: 1. Auctioneers

path: 9. AGENCY > 2. Particular Agencies > 1. Auctioneers


citation: CIV § 2363

text: An auctioneer has authority from a bidder at the auction, as well as from the seller, to bind both by a memorandum of the contract, as prescribed in the Title on Sale.

title: 9. AGENCY

article: 1. Auctioneers


citation: CIV § 2367

text: A factor is an agent, as defined by Section 2026.

title: 9. AGENCY

article: 2. Factors

path: 9. AGENCY > 2. Particular Agencies > 2. Factors


citation: CIV § 2368

text:
In addition to the authority of agents in general, a factor has actual authority from his principal, unless specially restricted:

1. To insure property consigned to him uninsured;

2. To sell, on credit, anything intrusted to him for sale, except such things as it is contrary to usage to sell on credit; but not to pledge, mortgage, or barter the same; and,

3. To delegate his authority to his partner or servant, but not to any person in an independent employment.

title: 9. AGENCY

article: 2. Factors


citation: CIV § 2369

text: A factor has ostensible authority to deal with the property of his principal as his own, in transactions with persons not having notice of the actual ownership.

title: 9. AGENCY

article: 2. Factors


citation: CIV § 2400

text: Powers of attorney are governed by the Power of Attorney Law (Division 4.5 (commencing with Section 4000) of the Probate Code) to the extent provided in that law.

history: (History: Repealed and added by Stats. 1994, Ch. 307, Sec. 5. Effective January 1, 1995.)

title: 9. AGENCY

path: 9. AGENCY > 2. Particular Agencies > 3. Powers of Attorney Under Probate Code


citation: CIV § 2500

text:
As used in this title:

(a) “Royalty recipient” means a party to a contract for the furnishing of services in the production of sound recordings, as defined in Section 101 of Title 17 of the United States Code, who has the right to receive royalties under that contract.

(b) A “royalty reporting party” is the party obligated to pay royalties to the royalty recipient under the contract described in subdivision (a).

history: (History: Added by Stats. 2004, Ch. 150, Sec. 2. Effective January 1, 2005.)

title: 10. RECORDING ARTIST CONTRACTS

path: 10. RECORDING ARTIST CONTRACTS


citation: CIV § 2501

text:
Notwithstanding any provision of a contract described in Section 2500:

(a) A royalty recipient may audit the books and records of the royalty reporting party to determine if the royalty recipient earned all of the royalties due the royalty recipient pursuant to the contract, subject to the following:

(1) A royalty recipient may conduct an audit not more than once per year.

(2) A royalty recipient shall request an audit within three years after the end of a royalty earnings period under the contract.

(3) A royalty recipient may not audit a particular royalty earnings period more than once.

(b) The royalty recipient shall retain a qualified royalty auditor of the royalty recipient’s choice to conduct an audit described in this section.

(c) The royalty recipient may enter into a contingency fee agreement with the auditor described in subdivision (b).

(d) A qualified royalty auditor may conduct individual audits of the books and records of a royalty reporting party on behalf of different royalty recipients simultaneously.

(e) Except as required by law, a qualified royalty auditor shall not disclose any confidential information obtained solely during an audit without the express consent of the party or parties to whom that information is confidential. This subdivision shall not prohibit the auditor from disclosing to the royalty recipient, or an agent of the recipient, on behalf of whom the auditor is conducting the audit information directly pertaining to that royalty recipient’s contract, as described in Section 2500.

(f) The provisions of subdivisions (a), (b), (c), (d), and (e) are in addition to any other rights provided by a contract, as described in Section 2500, between a royalty recipient and a royalty reporting party.

(g) Nothing in subdivision (a), (b), (c), (d), or (e) shall be deemed to extend any limitations period applicable to royalty accounting or payments not specifically addressed in this section.

(h) Nothing in subdivision (a), (b), (c), (d), or (e) shall be deemed to limit any rights provided by collective bargaining agreement or by applicable state or federal law.

title: 10. RECORDING ARTIST CONTRACTS


citation: CIV § 2505

text:
(a) For purposes of this title:

(1) “Assistive technology device” has the same meaning as in Section 7002 of Title 9 of the California Code of Regulations.

(2) “Shared mobility device” means an electrically motorized board as defined in Section 313.5 of the Vehicle Code, motorized scooter as defined in Section 407.5 of the Vehicle Code, electric bicycle as defined in Section 312.5 of the Vehicle Code, bicycle as defined in Section 231 of the Vehicle Code, or other similar personal transportation device, except as provided in subdivision (b) of Section 415 of the Vehicle Code, that is made available to the public by a shared mobility service provider for shared use and transportation in exchange for financial compensation via a digital application or other electronic or digital platform.

(3) “Shared mobility service provider” or “provider” means a person or entity that offers, makes available, or provides a shared mobility device in exchange for financial compensation or membership via a digital application or other electronic or digital platform.

(b) (1) Before distribution of a shared mobility device, a shared mobility service provider shall enter into an agreement with, or obtain a permit from, the city or county with jurisdiction over the area of use. The agreement or permit shall, at a minimum, require that the shared mobility service provider maintain commercial general liability insurance coverage with an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code, with limits not less than one million dollars ($1,000,000) for each occurrence for bodily injury or property damage, including contractual liability, personal injury, and product liability and completed operations, and not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period. The insurance shall not exclude coverage for injuries or damages caused by the shared mobility service provider to the shared mobility device user.

(2) (A) (i) (I) Notwithstanding any other law, effective July 1, 2023, the agreement or permit required pursuant to paragraph (1) shall require, in addition to the coverage required by paragraph (1), a shared mobility service provider to offer or make available, or to confirm the user of a shared mobility device maintains, insurance coverage for bodily injury or death suffered by a pedestrian when the injury or death involves, in whole or in part, the negligent conduct of the shared mobility device user, of ten thousand dollars ($10,000) for each occurrence of bodily injury to, or death of, one pedestrian in any one accident, and for property damage to an assistive technology device, of one thousand dollars ($1,000), for each occurrence. This paragraph shall not be interpreted to require coverage as provided in Division 7 (commencing with Section 16000) of the Vehicle Code.

(II) This clause shall not be interpreted to limit or supersede the requirement pursuant to paragraph (1) that the shared mobility service provider, in its agreement with or permit from the city or county with jurisdiction over the area of use, maintain commercial general liability insurance coverage with limits not less than five million dollars ($5,000,000) aggregate for all occurrences during the policy period.

(III) This clause shall not be interpreted to prohibit an aggregated cap on the insurance required by subclause (I).

(IV) Insurance coverage offered, made available, or confirmed pursuant to this clause shall not be considered a group insurance policy.

(ii) Notwithstanding clause (i) or any other law, a shared mobility service provider or user of a shared mobility device is not required to maintain insurance coverage, as described in clause (i), for injuries of, or death to, a pedestrian or property damage involving the following devices:

(I) A bicycle propelled exclusively by human power, as described in Section 231 of the Vehicle Code. For purposes of this paragraph, “bicycle” shall not include an electric bicycle.

(II) A class 1 electric bicycle as defined in paragraph (1) of subdivision (a) of Section 312.5 of the Vehicle Code.

(III) A class 2 electric bicycle as defined in paragraph (2) of subdivision (a) of Section 312.5 of the Vehicle Code.

(iii) The Legislature finds and declares that bicycles may be recognized as safer than motorized devices when in use, and recognizes there may remain a propensity for pedestrian injuries or death resulting from shared mobility bicycles and shared mobility electric bicycles being left negligently abandoned on pedestrian walkways.

(B) A shared mobility service provider may partner with an insurer to provide an option to its users via its digital application or other electronic platform where the user may purchase insurance coverage that meets or exceeds the requirements of subparagraph (A). The shared mobility service provider shall disclose via its digital application or other electronic platform the name, contact information, and location to make a claim with the insurer they chose to partner with. The shared mobility service provider may fund the cost of providing this coverage itself and pass the cost on in its standard fee to users, or through a separate charge to users. If a user of a shared mobility device does not maintain their own insurance policy, then that coverage shall be offered or made available by the shared mobility service provider. A shared mobility service provider shall not allow a user or individual to operate or utilize a shared mobility device without the coverage identified in subparagraph (A). If a user or individual gains access to a shared mobility device without obtaining coverage through the options outlined in this subparagraph or subparagraph (C), and uses or operates it uninsured, the shared mobility service provider shall be required to provide the insurance coverage identified in subparagraph (A).

(C) (i) A shared mobility service provider may enter into separate individual agreements with users maintaining their own liability insurance coverage that meets or exceeds the requirements of subparagraph (A), to exclude the user from the provider’s insurance coverage required in subparagraph (A) when, in consideration for such an agreement, the user shall not pay a separate charge for the coverage or shall be refunded the portion of the provider’s fee that pays for the provider’s coverage. The agreement shall be null and void upon lapse, cancellation, or expiration of the user’s policy. If a shared mobility device user entering into an agreement under this subparagraph misrepresents their maintenance of a policy or through an error or act of omission does not provide coverage, the shared mobility service provider shall be required to maintain the insurance to cover any claims resulting in injury, death, or property damage described in subparagraph (A).

(ii) It is the intent of the Legislature that, in enacting this subparagraph, shared mobility service providers have the flexibility to offer or make available insurance options to their users, while also ensuring the shared mobility service providers’ insurance serves as the backstop to cover any pedestrian injuries or death, or property damage, should there be any unintended gaps in coverage as a result of users misrepresenting or not maintaining the insurance.

(D) A shared mobility service provider shall keep an up-to-date list of its users that maintain their own liability insurance coverage that meets or exceeds the requirements of subparagraph (A). The provider shall annually transmit information on the percentage of its total users in the state that maintain their own insurance coverage, in the same manner as proscribed in subdivision (b) of Section 2505.5 of the Civil Code, to the Department of Insurance.

(3) Effective July 1, 2023, nothing in this section shall prohibit a provider from requiring a user to enter into an indemnity contract whereby the user will indemnify the provider for the user’s proportionate share of liability. The indemnity contract shall not require the user to defend or indemnify the provider for the provider’s negligence or willful misconduct. This section shall not be waived or modified by contractual agreement, act, or omission of the parties.

(c) (1) A city or county that authorizes a provider to operate within its jurisdiction on or after January 1, 2021, shall adopt rules for the operation, parking, and maintenance of shared mobility devices before a provider may offer any shared mobility device for rent or use in the city or county by any of the following:

(A) Ordinance.

(B) Agreement.

(C) Permit terms.

(2) A city or county that authorized a provider to operate within its jurisdiction before January 1, 2021, and continues to provide that authorization shall adopt rules for the operation, parking, and maintenance of shared mobility devices by January 1, 2022, by any of the following:

(A) Ordinance.

(B) Agreement.

(C) Permit terms.

(3) A provider shall comply with all applicable rules, agreements, and permit terms established pursuant to this subdivision.

(d) Nothing in this section shall prohibit a city or county from adopting any ordinance or regulation that is not inconsistent with this title.

(e) On or before July 1, 2023, a shared mobility service provider shall disclose to its customers that the customer’s existing homeowner’s, renter’s, or automobile insurance policies might not provide coverage for liability resulting from the use of shared mobility devices and that the customer should contact their insurance company or insurance agent to determine if coverage is provided, prior to allowing a user to initiate their first use of a device.

(1) The disclosure shall be made to, and acknowledged by, the customer via the provider’s digital application or electronic platform and posted on the provider’s internet website.

(2) The disclosure shall include the following language in capital letters: “YOUR HOMEOWNER’S, RENTER’S, OR AUTOMOBILE INSURANCE POLICIES MIGHT NOT PROVIDE COVERAGE FOR ACCIDENTS INVOLVING THE USE OF THIS DEVICE. TO DETERMINE IF COVERAGE IS PROVIDED YOU SHOULD CONTACT YOUR INSURANCE COMPANY OR AGENT.”

history: (History: Amended by Stats. 2023, Ch. 440, Sec. 1. (AB 458) Effective January 1, 2024.)

title: 10.1. Shared Mobility Devices

path: 10.1. Shared Mobility Devices


text:
(a) The Department of Insurance shall conduct a study and report the findings to the Legislature and the insurance committees of both houses no later than December 31, 2026, that does all of the following:

(1) In collaboration with a city or county with jurisdiction over areas of shared mobility device use and shared mobility device insurers and operators, assesses whether coverage requirements for shared mobility devices are appropriate to the risk of shared mobility device services and provide recommendations to update coverage requirements, if found to be necessary. The Department of Insurance may specify by bulletin the time periods and elements of data to be provided by admitted and nonadmitted insurers writing coverage pursuant to subdivision (b) of Section 2505.

(2) With input from shared mobility device providers, analyzes the process by which providers give users an option to purchase their own insurance coverage, and make recommendations, if necessary, on how to strengthen the market for individual mobility device liability coverage, including on ensuring agreements between a provider and user to remove the user from the provider’s policy do not result in circumstances where there is a gap in coverage providing recovery for injured pedestrians.

(3) (A) In collaboration with a city or county with jurisdiction over areas of shared mobility device use and shared mobility device insurers and operators, assesses whether there is a need for insurance coverage for injuries to, or death of, a pedestrian or property damage to assistive technology devices when the injury, death, or property damage involves, in whole or in part, the following devices:

(i) A bicycle propelled exclusively by human power, as described in Section 231 of the Vehicle Code. For purposes of this paragraph, “bicycle” shall not include an electric bicycle.

(ii) A class 1 electric bicycle as defined in paragraph (1) of subdivision (a) of Section 312.5 of the Vehicle Code.

(iii) A class 2 electric bicycle as defined in paragraph (2) of subdivision (a) of Section 312.5 of the Vehicle Code.

(B) It is the intent of the Legislature that the assessment in subparagraph (A) of this section will provide data on the prevalence of injuries, death, or property damage resulting from the devices described in clauses (i), (ii), and (iii) of subparagraph (A), including, but not limited to, resulting from such devices being negligently abandoned on pedestrian walkways, and determine whether additional insurance coverage is necessary to account for such pedestrian injuries or death and property damage.

(b) Data collected by the Department of Insurance pursuant to this section shall not include information that identifies or describes an individual, including, but not limited to, an individual’s name, social security number, home address, home telephone number, education, financial matters, medical or employment history, geolocation, or statements made by, or attributed to, the individual, or that may otherwise compromise the privacy of the individual under existing law.

(c) (1) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2027.

history: (History: Added by Stats. 2022, Ch. 740, Sec. 2. (AB 371) Effective January 1, 2023. Repealed as of January 1, 2027, by its own provisions.)

title: 10.1. Shared Mobility Devices


citation: CIV § 2506

text:
(a) A shared mobility service provider shall affix to each shared mobility device a readily accessible, single, and clearly displayed tactile sign containing raised characters and accompanying braille that complies with Section 11B-703 of the California Building Code, except that the raised characters shall be, at minimum, one-half inch high and in a color that contrasts with the signage background, in order to identify the device for the purpose of reporting illegal or negligent activity. The sign shall minimally consist of the company name and telephone number of the service provider that is visible from a minimum of five feet and not obfuscated by branding or other markings.

(b) This section shall become operative on January 1, 2024.

history: (History: Repealed and added by Stats. 2023, Ch. 36, Sec. 2. (AB 410) Effective July 6, 2023. Operative January 1, 2024, by its own provisions.)

title: 10.1. Shared Mobility Devices


citation: CIV § 2527

text:
(a) On or after January 1, 1984, no prescription drug claims processor, as defined in subdivision (b), shall enter into or perform any provision of any new contract, or perform any provision of any existing contract, with a licensed California pharmacy, or process or assist in the processing of any prescription drug claim submitted by or otherwise involving a service of a licensed California pharmacy unless the processor is in compliance with subdivisions (c) and (d).

(b) A “prescription drug claims processor,” as used in this part, means any nongovernmental entity which has a contractual relationship with purchasers of prepaid or insured prescription drug benefits, and which processes, consults, advises on, or otherwise assists in the processing of prepaid or insured prescription drug benefit claims submitted by a licensed California pharmacy or patron thereof. A “prescription drug claims processor” shall not include insurers (as defined in Section 23 of the Insurance Code), health care service plans (as defined in subdivision (f) of Section 1345 of the Health and Safety Code), nonprofit hospital service plans (pursuant to Chapter 11A, (commencing with Section 11491) of Part 2 of Division 2 of the Insurance Code), pharmacy permitholders (pursuant to Section 4080 of the Business and Professions Code), employers, trusts, and other entities which assume the risks of pharmaceutical services for designated beneficiaries. Also, a “prescription drug claims processor” shall not include insurers, health care service plans, and nonprofit hospital service plans which process claims on a nonrisk basis for self-insured clients.

(c) On or before January 1, 1984, every prescription drug claims processor shall have conducted or obtained the results of a study or studies which identifies the fees, separate from ingredient costs, of all, or of a statistically significant sample, of California pharmacies, for pharmaceutical dispensing services to private consumers. The study or studies shall meet reasonable professional standards of the statistical profession. The determination of the pharmacy’s fee made for purposes of the study or studies shall be computed by reviewing a sample of the pharmacy’s usual charges for a random or other representative sample of commonly prescribed drug products, subtracting the average wholesale price of drug ingredients, and averaging the resulting fees by dividing the aggregate of the fees by the number of prescriptions reviewed. A study report shall include a preface, an explanatory summary of the results and findings including a comparison of the fees of California pharmacies by setting forth the mean fee and standard deviation, the range of fees and fee percentiles (10th, 20th, 30th, 40th, 50th, 60th, 70th, 80th, 90th). This study or these studies shall be conducted or obtained no less often than every 24 months.

(d) The study report or reports obtained pursuant to subdivision (c) shall be transmitted by certified mail by each prescription drug claims processor to the chief executive officer or designee, of each client for whom it performs claims processing services. Consistent with subdivision (c), the processor shall transmit the study or studies to clients no less often than every 24 months.

Nothing in this section shall be construed to require a prescription drug claims processor to transmit to its clients more than two studies meeting the requirements of subdivision (c) during any such 24-month period.

Effective January 1, 1986, a claims processor may comply with subdivision (c) and this subdivision, in the event that no new study or studies meeting the criteria of subdivision (c) have been conducted or obtained subsequent to January 1, 1984, by transmitting the same study or studies previously transmitted, with notice of cost-of-living changes as measured by the Consumer Price Index (CPI) of the United States Department of Labor.

history: (History: Added by Stats. 1982, Ch. 296, Sec. 1.)

title: 11. PHARMACEUTICAL SERVICES

path: 11. PHARMACEUTICAL SERVICES


citation: CIV § 2528

text: A violation of Section 2527 may result only in imposition of a civil remedy, which includes, but is not limited to, imposition of statutory damages of not less than one thousand dollars ($1,000) or more than ten thousand dollars ($10,000) depending on the severity or gravity of the violation, plus reasonable attorney’s fees and costs, declaratory and injunctive relief, and any other relief which the court deems proper. Any owner of a licensed California pharmacy shall have standing to bring an action seeking a civil remedy pursuant to this section so long as his or her pharmacy has a contractual relationship with, or renders pharmaceutical services to, a beneficiary of a client of the prescription drug claims processor, against whom the action is brought provided that no such action may be commenced by the owner unless he or she has notified the processor in writing as to the nature of the alleged violation and the processor fails to remedy the violation within 30 days from the receipt of the notice or fails to undertake steps to remedy the violation within that period and complete the steps promptly thereafter.

title: 11. PHARMACEUTICAL SERVICES


citation: CIV § 2772

text: Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties, or of some other person.

title: 12. INDEMNITY

path: 12. INDEMNITY


citation: CIV § 2774

text: An agreement to indemnify a person against an act already done, is valid, even though the act was known to be wrongful, unless it was a felony.

title: 12. INDEMNITY


citation: CIV § 2775

text: An agreement to indemnify against the acts of a certain person, applies not only to his acts and their consequences, but also to those of his agents.

title: 12. INDEMNITY


citation: CIV § 2776

text: An agreement to indemnify several persons applies to each, unless a contrary intention appears.

title: 12. INDEMNITY


citation: CIV § 2777

text: One who indemnifies another against an act to be done by the latter, is liable jointly with the person indemnified, and separately, to every person injured by such act.

title: 12. INDEMNITY


citation: CIV § 2778

text:
In the interpretation of a contract of indemnity, the following rules are to be applied, unless a contrary intention appears:

1. Upon an indemnity against liability, expressly, or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable;

2. Upon an indemnity against claims, or demands, or damages, or costs, expressly, or in other equivalent terms, the person indemnified is not entitled to recover without payment thereof;

3. An indemnity against claims, or demands, or liability, expressly, or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith, and in the exercise of a reasonable discretion;

4. The person indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the latter in respect to the matters embraced by the indemnity, but the person indemnified has the right to conduct such defenses, if he chooses to do so;

5. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the latter suffered by him in good faith, is conclusive in his favor against the former;

6. If the person indemnifying, whether he is a principal or a surety in the agreement, has not reasonable notice of the action or proceeding against the person indemnified, or is not allowed to control its defense, judgment against the latter is only presumptive evidence against the former;

7. A stipulation that a judgment against the person indemnified shall be conclusive upon the person indemnifying, is inapplicable if he had a good defense upon the merits, which by want of ordinary care he failed to establish in the action.

title: 12. INDEMNITY


citation: CIV § 2779

text: Where one, at the request of another, engages to answer in damages, whether liquidated or unliquidated, for any violation of duty on the part of the latter, he is entitled to be reimbursed in the same manner as a surety, for whatever he may pay.

title: 12. INDEMNITY


citation: CIV § 2782

text:
(a) Except as provided in Sections 2782.1, 2782.2, 2782.5, and 2782.6, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract and that purport to indemnify the promisee against liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole negligence or willful misconduct of the promisee or the promisee’s agents, servants, or independent contractors who are directly responsible to the promisee, or for defects in design furnished by those persons, are against public policy and are void and unenforceable; provided, however, that this section shall not affect the validity of any insurance contract, workers’ compensation, or agreement issued by an admitted insurer as defined by the Insurance Code.

(b) (1) Except as provided in Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract with a public agency entered into before January 1, 2013, that purport to impose on the contractor, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable.

(2) Except as provided in Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract with a public agency entered into on or after January 1, 2013, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the public agency from, liability for the active negligence of the public agency are void and unenforceable.

(c) (1) Except as provided in subdivision (d) and Sections 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or agreements contained in, collateral to, or affecting any construction contract entered into on or after January 1, 2013, with the owner of privately owned real property to be improved and as to which the owner is not acting as a contractor or supplier of materials or equipment to the work, that purport to impose on any contractor, subcontractor, or supplier of goods or services, or relieve the owner from, liability are unenforceable to the extent of the active negligence of the owner, including that of its employees.

(2) For purposes of this subdivision, an owner of privately owned real property to be improved includes the owner of any interest therein, other than a mortgage or other interest that is held solely as security for performance of an obligation.

(3) This subdivision shall not apply to a homeowner performing a home improvement project on his or her own single family dwelling.

(d) For all construction contracts, and amendments thereto, entered into after January 1, 2009, for residential construction, as used in Title 7 (commencing with Section 895) of Part 2 of Division 2, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any construction contract, and amendments thereto, that purport to insure or indemnify, including the cost to defend, the builder, as defined in Section 911, or the general contractor or contractor not affiliated with the builder, as described in subdivision (b) of Section 911, by a subcontractor against liability for claims of construction defects are unenforceable to the extent the claims arise out of, pertain to, or relate to the negligence of the builder or contractor or the builder’s or contractor’s other agents, other servants, or other independent contractors who are directly responsible to the builder, or for defects in design furnished by those persons, or to the extent the claims do not arise out of, pertain to, or relate to the scope of work in the written agreement between the parties. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties. Nothing in this subdivision shall prevent any party from exercising its rights under subdivision (a) of Section 910. This subdivision shall not affect the obligations of an insurance carrier under the holding of Presley Homes, Inc. v. American States Insurance Company (2001) 90 Cal.App.4th 571. Nor shall this subdivision affect the obligations of a builder or subcontractor pursuant to Title 7 (commencing with Section 895) of Part 2 of Division 2.

(e) Subdivision (d) does not prohibit a subcontractor and builder or general contractor from mutually agreeing to the timing or immediacy of the defense and provisions for reimbursement of defense fees and costs, so long as that agreement does not waive or modify the provisions of subdivision (d) subject, however, to paragraphs (1) and (2). A subcontractor shall owe no defense or indemnity obligation to a builder or general contractor for a construction defect claim unless and until the builder or general contractor provides a written tender of the claim, or portion thereof, to the subcontractor which includes all of the information provided to the builder or general contractor by the claimant or claimants, including, but not limited to, information provided pursuant to subdivision (a) of Section 910, relating to claims caused by that subcontractor’s scope of work. This written tender shall have the same force and effect as a notice of commencement of a legal proceeding. If a builder or general contractor tenders a claim for construction defects, or a portion thereof, to a subcontractor in the manner specified by this provision, the subcontractor shall elect to perform either of the following, the performance of which shall be deemed to satisfy the subcontractor’s defense obligation to the builder or general contractor:

(1) Defend the claim with counsel of its choice, and the subcontractor shall maintain control of the defense for any claim or portion of claim to which the defense obligation applies. If a subcontractor elects to defend under this paragraph, the subcontractor shall provide written notice of the election to the builder or general contractor within a reasonable time period following receipt of the written tender, and in no event later than 90 days following that receipt. Consistent with subdivision (d), the defense by the subcontractor shall be a complete defense of the builder or general contractor of all claims or portions thereof to the extent alleged to be caused by the subcontractor, including any vicarious liability claims against the builder or general contractor resulting from the subcontractor’s scope of work, but not including claims resulting from the scope of work, actions, or omissions of the builder, general contractor, or any other party. Any vicarious liability imposed upon a builder or general contractor for claims caused by the subcontractor electing to defend under this paragraph shall be directly enforceable against the subcontractor by the builder, general contractor, or claimant.

(2) Pay, within 30 days of receipt of an invoice from the builder or general contractor, no more than a reasonable allocated share of the builder’s or general contractor’s defense fees and costs, on an ongoing basis during the pendency of the claim, subject to reallocation consistent with subdivision (d), and including any amounts reallocated upon final resolution of the claim, either by settlement or judgment. The builder or general contractor shall allocate a share to itself to the extent a claim or claims are alleged to be caused by its work, actions, or omissions, and a share to each subcontractor to the extent a claim or claims are alleged to be caused by the subcontractor’s work, actions, or omissions, regardless of whether the builder or general contractor actually tenders the claim to any particular subcontractor, and regardless of whether that subcontractor is participating in the defense. Any amounts not collected from any particular subcontractor may not be collected from any other subcontractor.

(f) Notwithstanding any other provision of law, if a subcontractor fails to timely and adequately perform its obligations under paragraph (1) of subdivision (e), the builder or general contractor shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, consequential damages, and reasonable attorney’s fees. If a subcontractor fails to timely perform its obligations under paragraph (2) of subdivision (e), the builder or general contractor shall have the right to pursue a claim against the subcontractor for any resulting compensatory and consequential damages, as well as for interest on defense and indemnity costs, from the date incurred, at the rate set forth in subdivision (g) of Section 3260, and for the builder’s or general contractor’s reasonable attorney’s fees incurred to recover these amounts. The builder or general contractor shall bear the burden of proof to establish both the subcontractor’s failure to perform under either paragraph (1) or (2) of subdivision (e) and any resulting damages. If, upon request by a subcontractor, a builder or general contractor does not reallocate defense fees to subcontractors within 30 days following final resolution of the claim as described above, the subcontractor shall have the right to pursue a claim against the builder or general contractor for any resulting compensatory and consequential damages, as well as for interest on the fees, from the date of final resolution of the claim, at the rate set forth in subdivision (g) of Section 3260, and the subcontractor’s reasonable attorney’s fees incurred in connection therewith. The subcontractor shall bear the burden of proof to establish both the failure to reallocate the fees and any resulting damages. Nothing in this section shall prohibit the parties from mutually agreeing to reasonable contractual provisions for damages if any party fails to elect for or perform its obligations as stated in this section.

(g) A builder, general contractor, or subcontractor shall have the right to seek equitable indemnity for any claim governed by this section.

(h) Nothing in this section limits, restricts, or prohibits the right of a builder, general contractor, or subcontractor to seek equitable indemnity against any supplier, design professional, or product manufacturer.

(i) As used in this section, “construction defect” means a violation of the standards set forth in Sections 896 and 897.

history: (History: Amended by Stats. 2011, Ch. 707, Sec. 2. (SB 474) Effective January 1, 2012.)

title: 12. INDEMNITY


text: Nothing contained in Section 2782 shall prevent a contractor responsible for the performance of a construction contract, as defined in Section 2783, from indemnifying fully a person, firm, corporation, state or other agency for whose account the construction contract is not being performed but who, as an accommodation, enters into an agreement with the contractor permitting such contractor to enter upon or adjacent to its property for the purpose of performing such construction contract for others.

history: (History: Added by Stats. 1968, Ch. 466.)

title: 12. INDEMNITY


text:
(a) Nothing contained in subdivision (a) of Section 2782 prevents an agreement to indemnify a professional engineer against liability for the negligence of the engineer, or the engineer’s agents or employees, in providing inspection services to plants or other facilities if all the following criteria are satisfied:

(1) The promisor is the owner of the plants or facilities inspected.

(2) The promisor is audited annually by an independent certified public accountant, public accountant, or accounting licentiate of another state authorized by the laws of that state to perform the audit.

(3) The net worth of the promisor exceeds ten million dollars ($10,000,000), as determined by the promisor’s most recent annual independent audit. The requirement of this paragraph shall be satisfied at the time the contract for indemnification is entered, and a subsequent reduction of the promisor’s net worth shall not void the obligation to indemnify.

(4) The promisor is self-insured with respect to liability arising from ownership of the plant or facility.

(5) The indemnification shall not be applicable to the first two hundred fifty thousand dollars ($250,000) of liability.

(b) Subdivision (a) does not authorize contracts for indemnification of liability arising from willful misconduct.

history: (History: Added by Stats. 1985, Ch. 567, Sec. 2.)

title: 12. INDEMNITY


text:
(a) Except as provided in subdivision (b), provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any construction contract and amendments thereto entered into on or after January 1, 2013, that purport to insure or indemnify, including the cost to defend, a general contractor, construction manager, or other subcontractor, by a subcontractor against liability for claims of death or bodily injury to persons, injury to property, or any other loss, damage, or expense are void and unenforceable to the extent the claims arise out of, pertain to, or relate to the active negligence or willful misconduct of that general contractor, construction manager, or other subcontractor, or their other agents, other servants, or other independent contractors who are responsible to the general contractor, construction manager, or other subcontractor, or for defects in design furnished by those persons, or to the extent the claims do not arise out of the scope of work of the subcontractor pursuant to the construction contract. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties. This section shall not affect the obligations of an insurance carrier under the holding of Presley Homes, Inc. v. American States Insurance Company (2001) 90 Cal.App.4th 571, nor the rights of an insurance carrier under the holding of Buss v. Superior Court (1997) 16 Cal.4th 35.

(b) This section does not apply to:

(1) Contracts for residential construction that are subject to any part of Title 7 (commencing with Section 895) of Part 2 of Division 2.

(2) Direct contracts with a public agency that are governed by subdivision (b) of Section 2782.

(3) Direct contracts with the owner of privately owned real property to be improved that are governed by subdivision (c) of Section 2782.

(4) Any wrap-up insurance policy or program.

(5) A cause of action for breach of contract or warranty that exists independently of an indemnity obligation.

(6) A provision in a construction contract that requires the promisor to purchase or maintain insurance covering the acts or omissions of the promisor, including additional insurance endorsements covering the acts or omissions of the promisor during ongoing and completed operations.

(7) Indemnity provisions contained in loan and financing documents, other than construction contracts to which the contractor and a contracting project owner’s lender are parties.

(8) General agreements of indemnity required by sureties as a condition of execution of bonds for construction contracts.

(9) The benefits and protections provided by the workers’ compensation laws.

(10) The benefits or protections provided by the governmental immunity laws.

(11) Provisions that require the purchase of any of the following:

(A) Owners and contractors protective liability insurance.

(B) Railroad protective liability insurance.

(C) Contractors all-risk insurance.

(D) Builders all-risk or named perils property insurance.

(12) Contracts with design professionals.

(13) Any agreement between a promisor and an admitted surety insurer regarding the promisor’s obligations as a principal or indemnitor on a bond.

(c) Notwithstanding any choice-of-law rules that would apply the laws of another jurisdiction, the law of California shall apply to every contract to which this section applies.

(d) Any waiver of the provisions of this section is contrary to public policy and is void and unenforceable.

(e) Subdivision (a) does not prohibit a subcontractor and a general contractor or construction manager from mutually agreeing to the timing or immediacy of the defense and provisions for reimbursement of defense fees and costs, so long as that agreement does not waive or modify the provisions of subdivision (a) subject, however, to paragraphs (1) and (2). A subcontractor shall owe no defense or indemnity obligation to a general contractor or construction manager for a claim unless and until the general contractor or construction manager provides a written tender of the claim, or portion thereof, to the subcontractor that includes the information provided by the claimant or claimants relating to claims caused by that subcontractor’s scope of work. In addition, the general contractor or construction manager shall provide a written statement regarding how the reasonable allocated share of fees and costs was determined. The written tender shall have the same force and effect as a notice of commencement of a legal proceeding. If a general contractor or construction manager tenders a claim, or portion thereof, to a subcontractor in the manner specified by this subdivision, the subcontractor shall elect to perform either of the following, the performance of which shall be deemed to satisfy the subcontractor’s defense obligation to the general contractor or construction manager:

(1) Defend the claim with counsel of its choice, and the subcontractor shall maintain control of the defense for any claim or portion of claim to which the defense obligation applies. If a subcontractor elects to defend under this paragraph, the subcontractor shall provide written notice of the election to the general contractor or construction manager within a reasonable time period following receipt of the written tender, and in no event later than 30 days following that receipt. Consistent with subdivision (a), the defense by the subcontractor shall be a complete defense of the general contractor or construction manager of all claims or portions thereof to the extent alleged to be caused by the subcontractor, including any vicarious liability claims against the general contractor or construction manager resulting from the subcontractor’s scope of work, but not including claims resulting from the scope of work, actions, or omissions of the general contractor or construction manager, or any other party. Any vicarious liability imposed upon a general contractor or construction manager for claims caused by the subcontractor electing to defend under this paragraph shall be directly enforceable against the subcontractor by the general contractor, construction manager, or claimant. All information, documentation, or evidence, if any, relating to a subcontractor’s assertion that another party is responsible for the claim shall be provided by that subcontractor to the general contractor or construction manager that tendered the claim.

(2) Pay, within 30 days of receipt of an invoice from the general contractor or construction manager, no more than a reasonable allocated share of the general contractor’s or construction manager’s defense fees and costs, on an ongoing basis during the pendency of the claim, subject to reallocation consistent with subdivision (a), and including any amounts reallocated upon final resolution of the claim, either by settlement or judgment. The general contractor or construction manager shall allocate a share to itself to the extent a claim or claims are alleged to be caused by its work, actions, or omissions, and a share to each subcontractor to the extent a claim or claims are alleged to be caused by the subcontractor’s work, actions, or omissions, regardless of whether the general contractor or construction manager actually tenders the claim to any particular subcontractor, and regardless of whether that subcontractor is participating in the defense. Any amounts not collected from any particular subcontractor may not be collected from any other subcontractor.

(f) Notwithstanding any other provision of law, if a subcontractor fails to timely and adequately perform its obligations under paragraph (1) of subdivision (e), the general contractor or construction manager shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, consequential damages, and reasonable attorney’s fees. If a subcontractor fails to timely perform its obligations under paragraph (2) of subdivision (e), the general contractor or construction manager shall have the right to pursue a claim against the subcontractor for any resulting compensatory damages, interest on defense and indemnity costs, from the date incurred, at the rate set forth in subdivision (g) of Section 3260, consequential damages, and reasonable attorney’s fees incurred to recover these amounts. The general contractor or construction manager shall bear the burden of proof to establish both the subcontractor’s failure to perform under either paragraph (1) or (2) of subdivision (e) and any resulting damages. If, upon request by a subcontractor, a general contractor or construction manager does not reallocate defense fees to subcontractors within 30 days following final resolution of the claim, the subcontractor shall have the right to pursue a claim against the general contractor or construction manager for any resulting compensatory damages with interest, from the date of final resolution of the claim, at the rate set forth in subdivision (g) of Section 3260. The subcontractor shall bear the burden of proof to establish both the failure to reallocate the fees and any resulting damages. Nothing in this section shall prohibit the parties from mutually agreeing to reasonable contractual provisions for damages if any party fails to elect for or perform its obligations as stated in this section.

(g) For purposes of this section, “construction manager” means a person or entity, other than a public agency or owner of privately owned real property to be improved, who is contracted by a public agency or the owner of privately owned real property to be improved to direct, schedule, or coordinate the work of contractors for a work of improvement, but does not itself perform the work.

(h) For purposes of this section, “general contractor,” in relation to a given subcontractor, means a person who has entered into a construction contract and who has entered into a subcontract with that subcontractor under which the subcontractor agrees to perform a portion of that scope of work. Where a subcontractor has itself subcontracted a portion of its work, that subcontractor, along with its general contractor, shall be considered a general contractor as to its subcontractors.

(i) For purposes of this section, “subcontractor” means a person who has entered into a construction contract either with a contractor to perform a portion of that contractor’s work under a construction contract or with any person to perform a construction contract subject to the direction or control of a general contractor or construction manager.

(j) A general contractor, construction manager, or subcontractor shall have the right to seek equitable indemnity for any claim governed by this section.

(k) Nothing in this section limits, restricts, or prohibits the right of a general contractor, construction manager, or subcontractor to seek equitable indemnity against any supplier, design professional, product manufacturer, or other independent contractor or subcontractor.

(l) This section shall not affect the validity of any existing insurance contract or agreement, including, but not limited to, a contract or agreement for workers’ compensation or an agreement issued on or before January 1, 2012, by an admitted insurer, as defined in the Insurance Code.

(m) Nothing in this section shall be construed to affect the obligation, if any, of either a contractor or construction manager to indemnify, including defending or paying the costs to defend, a public agency against any claim arising from the alleged active negligence of the public agency under subdivision (b) of Section 2782 or to indemnify, including defending or paying the costs to defend, an owner of privately owned real property to be improved against any claim arising from the alleged active negligence of the owner under subdivision (c) of Section 2782.

(n) Nothing in this section shall be construed to affect the obligation, if any, of either a contractor or construction manager to provide or maintain insurance covering the acts or omissions of the promisor, including additional insurance endorsements covering the acts or omissions of the promisor during ongoing and completed operations pursuant to a construction contract with a public agency under subdivision (b) of Section 2782 or an owner of privately owned real property to be improved under subdivision (c) of Section 2782.

history: (History: Added by Stats. 2011, Ch. 707, Sec. 3. (SB 474) Effective January 1, 2012.)

title: 12. INDEMNITY


text: Nothing contained in Section 2782 shall prevent a party to a construction contract and the owner or other party for whose account the construction contract is being performed from negotiating and expressly agreeing with respect to the allocation, release, liquidation, exclusion, or limitation as between the parties of any liability (a) for design defects, or (b) of the promisee to the promisor arising out of or relating to the construction contract.

history: (History: Amended by Stats. 1980, Ch. 211, Sec. 2.)

title: 12. INDEMNITY


text:
(a) Nothing in subdivision (a) of Section 2782 prevents an agreement to indemnify a professional engineer or geologist or the agents, servants, independent contractors, subsidiaries, or employees of that engineer or geologist from liability as described in Section 2782 in providing hazardous materials identification, evaluation, preliminary assessment, design, remediation services, or other services of the types described in Sections 78125 and 78135 of the Health and Safety Code or the federal National Oil and Hazardous Substances Pollution Contingency Plan (40 C.F.R. Sec. 300.1 et seq.), if all of the following criteria are satisfied:

(1) The services in whole or in part address subterranean contamination or other concealed conditions caused by the hazardous materials.

(2) The promisor is responsible, or potentially responsible, for all or part of the contamination.

(b) The indemnification described in this section is valid only for damages arising from, or related to, subterranean contamination or concealed conditions, and is not applicable to the first two hundred fifty thousand dollars ($250,000) of liability or a greater amount as is agreed to by the parties.

(c) This section does not authorize contracts for indemnification, by promisors specified in paragraph (2) of subdivision (a), of any liability of a promisee arising from the gross negligence or willful misconduct of the promisee.

(d) “Hazardous materials,” as used in this section, means any hazardous or toxic substance, material, or waste that is or becomes subject to regulation by any agency of the state, any municipality or political subdivision of the state, or the United States. “Hazardous materials” includes, but is not limited to, any material or substance that is any of the following:

(1) A hazardous substance, as defined in subdivision (a) of Section 78075 of the Health and Safety Code.

(2) Hazardous material, as defined in subdivision (n) of Section 25501 of the Health and Safety Code.

(3) A regulated substance, as defined in subdivision (i) of Section 25532 of the Health and Safety Code.

(4) Hazardous waste, as defined in Section 25117 of the Health and Safety Code.

(5) Extremely hazardous waste, as defined in Section 25115 of the Health and Safety Code.

(6) Petroleum.

(7) Asbestos.

(8) Designated as a hazardous substance for purposes of Section 311 of the Federal Water Pollution Control Act, as amended (33 U.S.C. Sec. 1321).

(9) Hazardous waste, as defined by subsection (5) of Section 1004 of the federal Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Sec. 6903).

(10) A hazardous substance, as defined by subsection (14) of Section 101 of the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Sec. 9601).

(11) A regulated substance, as defined by subsection (7) of Section 9001 of the federal Solid Waste Disposal Act, as amended (42 U.S.C. Sec. 6991).

(e) Nothing in this section shall be construed to alter, modify, or otherwise affect the liability of the promisor or promisee, under an indemnity agreement meeting the criteria of this section, to third parties for damages for death or bodily injury to persons, injury to property, or any other loss, damage, or expense.

(f) This section does not apply to public entities, as defined by Section 811.2 of the Government Code.

history: (History: Amended by Stats. 2022, Ch. 258, Sec. 6. (AB 2327) Effective January 1, 2023. Operative January 1, 2024, pursuant to Sec. 130 of Stats. 2022, Ch. 258.)

title: 12. INDEMNITY


text:
(a) For all contracts, and amendments thereto, entered into on or after January 1, 2018, for design professional services, all provisions, clauses, covenants, and agreements contained in, collateral to, or affecting any such contract, and amendments thereto, that purport to indemnify, including the duty and the cost to defend, the indemnitee by a design professional against liability for claims against the indemnitee, are unenforceable, except to the extent that the claims against the indemnitee arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the design professional. In no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault. However, notwithstanding the previous sentence, in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the design professional shall meet and confer with other parties regarding unpaid defense costs. The duty to indemnify, including the duty and the cost to defend, is limited as provided in this section. This section shall not be waived or modified by contractual agreement, act, or omission of the parties. Contractual provisions, clauses, covenants, or agreements not expressly prohibited herein are reserved to the agreement of the parties.

(b) All contracts and all solicitation documents, including requests for proposal, invitations for bid, and other solicitation documents for design professional services are deemed to incorporate by reference the provisions of this section.

(c) For purposes of this section, “design professional” includes all of the following:

(1) An individual licensed as an architect pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code, and a business entity offering architectural services in accordance with that chapter.

(2) An individual licensed as a landscape architect pursuant to Chapter 3.5 (commencing with Section 5615) of Division 3 of the Business and Professions Code, and a business entity offering landscape architectural services in accordance with that chapter.

(3) An individual registered as a professional engineer pursuant to Chapter 7 (commencing with Section 6700) of Division 3 of the Business and Professions Code, and a business entity offering professional engineering services in accordance with that chapter.

(4) An individual licensed as a professional land surveyor pursuant to Chapter 15 (commencing with Section 8700) of Division 3 of the Business and Professions Code, and a business entity offering professional land surveying services in accordance with that chapter.

(d) This section shall apply only to a professional service contract, or any amendment thereto, entered into on or after January 1, 2018.

(e) The provisions of this section pertaining to the duty and cost to defend shall not apply to either of the following:

(1) Any contract for design professional services, or amendments thereto, where a project-specific general liability policy insures all project participants for general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis.

(2) A design professional who is a party to a written design-build joint venture agreement.

(f) Nothing in this section shall abrogate the provisions of Section 1104 of the Public Contract Code.

(g) Indemnitee, for purposes of this section, does not include any agency of the state.

history: (History: Amended by Stats. 2017, Ch. 8, Sec. 1. (SB 496) Effective January 1, 2018.)

title: 12. INDEMNITY